Consent To Let Problem?

Consent To Let Problem?

8:54 AM, 5th January 2022, About 5 months ago 4

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Between Christmas and New Year, we became aware of a problem regarding consent to let on our home.

I bought a property a while back and in 2018 was offered a job elsewhere. I called my lender, HBOS, and had a lengthy interview, discussion and debate about consent to let. I was told that this was approved and that a 1.25% fee would be applied. I agreed on this.

Following this, the job didn’t happen, and I met someone. I called my lender and explained this, and they said it wouldn’t be a problem – this was January 2019. At that point, I updated my correspondence address and everything was in place.

So now I’ve called to see if they can do a deal on a Buy to Let mortgage as the original mortgage is coming to an end. The person on the end was fantastic and all seemed well until she asked about a different correspondence address. I again explained why, and she said that I didn’t have consent to let, and never had. They had no record of any agreement.

She then said not to worry, and she would speak to a manager about what to do next. I’m still pursuing offers with other lenders and have a few deals on the table, but I’m concerned.

What might happen about this miscommunication? My defence would be that I explained this at every point, and have had a different correspondence address for nearly 4 years. Although, somewhat naively, I can only find the scrawled notes I made during the initial call, which are quite detailed about fees and next steps…

Any advice recommended for a stressed couple?



Comments

by Smartermind

9:32 AM, 5th January 2022, About 5 months ago

You should have just remortgaged to a buy to let on the open market and not got into a debate with the existing lender.

Obviously you and the bank should have kept better records of your conversations. As a lay person, I can only say that either the bank will accept the situation or pursue you for alleged fraud (from their point of view). In any court case, your hand written notes would provide some evidence of the discussion taking place.

Incidentally, I was once told by a bank manager whilst negotiating a mortgage for a property to the question, "what if I want to let out the property" that the bank was not going to come out to inspect the property. However, that was in the days before the banking crisis. Things have tightened up a lot since.

by TrevL

13:25 PM, 5th January 2022, About 5 months ago

How is this a miscommication? Either you let the property out and paid the 1.25% fee that they made you aware of or didn't let the property out and didn't pay the fee.

The job and new partner are immaterial, as is any miscommunication that didn't expicitly state you were renting the property out.

Your probably not the first to be caught out like this, if that's any comfort, but I guess that's why your asking.

by Kate Mellor

10:12 AM, 8th January 2022, About 5 months ago

Personally I wouldn’t worry about it at all. Don’t mention it again and just get on with the remortgage to a buy to let.
Essentially you’re in breach of the terms of your agreement. The remedy for that will be written up in your mortgage terms which you can read if you wish. It usually involves the option for the lender to demand immediate repayment of the loan.
Don’t force your lender to acknowledge the breach, because then they have to address it which is in no one’s interest if you’re repaying the loan anyway.

Don’t lie, but if they mention your different address again, just say you’ve moved out and intend to keep the property as a buy to let which is why you’re remortgaging. You can’t go back in time, so there’s no point worrying.

by Crossed_Swords

10:36 AM, 8th January 2022, About 5 months ago

Reply to the comment left by TrevL at 05/01/2022 - 13:25I read this as that they did let the property and lived in another property. Banks always write to you with a new agreement so if you didn't receive anything then you probably didn't get consent. It could have gone to your property and not been passed on by the tenant.
The bank should however have a record of the call either as notes on your file or a recording as they always record phone calls. Insist that they check this and stand your ground.
Were you paying the additional amount? 1.25% is probably close to double the original payment at present so the payments would have been much higher, check your mortgage statements because that is enough proof. If not, then you know you didn't get the consent.
The worst is that you might have to pay the shortfall and that might be a good offer to make since technically by your own admission you may owe it.
There are sometimes advantages staying with the same lender if they do a product transfer.


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